In early October the installation of fiber-optic transmission line (FOTL) Russia-Azerbaijan commenced on the territory of Rostelecom Southern branch. The length of the Russian portion (up to the border with Azerbaijan) is about 200 km. 
 

The commissioning of the new link will materially strengthen the Company’s competitive position at the international communications service market since this would enable the company: 

·        To gain direct access to Azerbaijan and further on along the shortest route to CIS countries – Georgia and Armenia and countries of the Middle East;

·        To meet the growing demand for traffic passage in this direction;

·        To obtain a vital saving due to abandonment of the international links’ lease with the satellite communications operators;

·        To improve the quality of communications. 

The estimated cost of installation of FOTL Russia – Azerbaijan is equal to 137,6 million rubles (incl. VAT). 

According to the director of Rostelecom Southern branch Mr. Alexander Afanasiev, most of the section run is a rough terrain. The company’s technical experts are to find solutions for crossing 14 rivers, many of which are 30 meters wide. 

Certain statements in this press-release are “forward-looking statements” within the meaning of the U.S. federal securities laws and are intended to be covered by the safe harbors created thereby.

These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. 

These risks include the risk of changes the Company’s operations and business prospects, the general financial and economic circumstances, relating to regulation of the Russian telecommunications industry and the Russian legislation; the competition and other risks.

For a more detailed discussion of these and other factors, see the Company’s Annual Report on Form 20-F for its most recently completed fiscal year and the Company’s other public filings with The U.S. Securities and Exchange Commission.  Many of these factors are beyond the Company’s ability to control or predict.  Given these and other uncertainties, the Company  cautions not to place undue reliance on any of the forward-looking statements contained herein or otherwise. 

The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as maybe required under applicable the U.S. federal securities laws.

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